31 August, Saturday, 2024
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Contrarian investing is harder than it looks

But those with the grit to stick with unfashionable bets stand to reap the rewards

The trend is your friend. Most of the time, investors are better off assuming that a rising market will remain on an upward path and that falling investments will also continue to do so.

Turning points are, by definition, rare and if you try to catch them you’ll invariably be early or late.

But while you might not pinpoint a market’s change of direction with precision, you can improve the likelihood of being close.

The longer a movement continues, the more stretched fundamental measures of value become, the greater the chance that you will experience a reversal. You can stack the odds in your favour.

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